TRW & Co · Aviation and logistics
Sustainable Aviation Fuel Levy in Singapore from 2027: Who Pays and What Contracts Need
The SAF levy in Singapore applies to passengers departing from 1 January 2027 on tickets sold from 1 October 2026, at S$1.00 to S$41.60 depending on destination band and cabin. Business jets pay a per-aircraft levy on the same dates, and cargo follows in 2028. The proceeds fund central purchasing of sustainable aviation fuel.
Key pointBecause the levy is fixed while the SAF uplift flexes with fuel prices, the real contract risk is not today's quantum but future revisions, so pass-through clauses should track the CAAS schedule rather than fixed figures.
At a glance
Passenger levy dates
Applies to origin-destination passengers departing Singapore from 1 January 2027 on tickets sold from 1 October 2026; transit passengers are not charged.
S$1.00 to S$41.60
Economy cabins pay S$1.00 to S$10.40 and premium cabins S$4.00 to S$41.60, rising across four destination bands from South-east Asia to the Americas.
Business aviation levy
Per-aircraft charges from S$40 to S$6,500 by wingspan code and destination band apply to general and business aviation on the same dates.
Cargo from 2028
A per-kilogramme levy will apply to cargo departing from 1 January 2028 for cargo services sold from 1 October 2027, varying by destination band.
Statutory pass-through
The CAAS (Amendment) Act 2025 creates the SAF Fund and allows the levy to be passed on to passengers, consignors and flight charterers.
Swipe or scroll →
The short answer: who pays the SAF levy in Singapore and when
The SAF levy in Singapore is a fixed charge on flights departing Singapore that funds the purchase of sustainable aviation fuel (SAF). As of October 2026, the Civil Aviation Authority of Singapore (CAAS) states that the passenger levy applies to origin-destination passengers on flights departing Singapore from 1 January 2027, for tickets sold from 1 October 2026. Tickets on sale now for travel next year are therefore already carrying it.
Economy and premium economy passengers pay between S$1.00 and S$10.40 depending on the destination band; business and first class passengers pay between S$4.00 and S$41.60. Business and general aviation flights pay a per-aircraft levy from the same dates, and a per-kilogramme cargo levy follows from 1 January 2028 for cargo services sold from 1 October 2027.
This article explains the legal basis, the levy amounts, how airlines and operators pass it on, and what the levy means for contracts with charterers, freight customers, lessors and financiers. For the wider aviation framework, see our page on aviation and aircraft leasing in Singapore.
What changed and when
The levy is created by the Civil Aviation Authority of Singapore (Amendment) Act 2025, which amends the Civil Aviation Authority of Singapore Act 2009. Parliament passed the Bill on 14 October 2025 and, as Allen & Gledhill notes, the Act was gazetted on 19 November 2025. It establishes a SAF Fund, empowers CAAS to impose a SAF levy on outbound flights, and allows the levy to be passed on to passengers, consignors of goods and flight charterers.
The timetable has moved once. CAAS originally planned to apply the passenger levy to flights from October 2026 for tickets sold from 1 April 2026. On 25 March 2026, CAAS announced a postponement because of the impact of the conflict in the Middle East on airlines and passengers, as reported at the time. The 1% SAF target moved from 2026 to 2027, with the aim of raising it to 3%–5% by 2030 depending on global developments and SAF availability.
Who is affected
The SAF levy in Singapore reaches further than airlines. Passengers and corporate travel buyers pay it through fares. Travel agents and online platforms must display and collect it correctly. Business jet operators, brokers and charterers face the per-aircraft levy. From 2028, freight forwarders, shippers and e-commerce sellers using air freight will see the cargo levy in their rates. Lessors and lenders are affected indirectly through their airline counterparties.
| Category | Levy basis | Applies to departures from | For tickets or services sold from |
|---|---|---|---|
| Origin-destination passengers | Per passenger, by destination band and cabin | 1 January 2027 | 1 October 2026 |
| General and business aviation | Per aircraft, by wingspan code and destination band | 1 January 2027 | 1 October 2026 |
| Cargo shipments | Per kilogramme, by destination band | 1 January 2028 | 1 October 2027 |
How much the SAF levy is
According to CAAS's published schedule, the passenger component of the {KW} is set by destination band and cabin class. Economy cabins cover economy and premium economy; premium cabins cover business and first.
| Destination band | Economy cabin | Premium cabin |
|---|---|---|
| Band I | S$1.00 | S$4.00 |
| Band II | S$2.80 | S$11.20 |
| Band III | S$6.40 | S$25.60 |
| Band IV | S$10.40 | S$41.60 |
Reporting of CAAS's March 2026 announcement described the bands as South-east Asia (Band I); North-east Asia, South Asia, Australia and Papua New Guinea (Band II); Africa, Central and West Asia, Europe, the Middle East, the Pacific Islands and New Zealand (Band III); and the Americas (Band IV). For multi-stop itineraries, the levy is based on the first destination after leaving Singapore. Passengers transiting through Singapore are not charged, and training, charitable and humanitarian flights are excluded.
For business and general aviation, the per-aircraft levy depends on the ICAO aircraft code letter (by wingspan) and the destination band, ranging from S$40 for the smallest aircraft on a Band I flight to S$6,500 for the largest on a Band IV flight. Charter operators should check the current CAAS table before quoting.
Worked examples
Because the SAF levy in Singapore is charged only on departures from Singapore, a return trip attracts it once. A family of four flying economy to London pays four Band III economy levies of S$6.40, or S$25.60 in total; their flight home from London is not charged in Singapore. A business class passenger flying to New York pays S$41.60 on the outbound leg. A passenger flying Singapore–Bangkok–London on a through ticket is charged on the Band I rate, because the band follows the first destination after Singapore.
These amounts are small relative to fares, but across a corporate travel programme or a charter fleet they add up, and errors in band or transit treatment multiply quickly.
The levy is fixed in advance rather than tracking the market price of SAF. If SAF premiums turn out higher or lower than projected, the SAF uplift is adjusted rather than the levy. That gives cost certainty for pricing, but it also means the levy quantum can be reviewed by CAAS from time to time, so contracts should not hard-code today's figures.
Where the money goes: the SAF Fund and SAFCo
Levy proceeds go into a dedicated SAF Fund, separate from CAAS's general revenue. The Fund procures SAF and SAF environmental attributes (EAs) and covers related administrative costs. SAF EAs represent the lifecycle carbon benefit of SAF compared with conventional jet fuel.
CAAS launched the Singapore Sustainable Aviation Fuel Company Ltd (SAFCo) in October 2025 to manage levy collection and aggregate demand for central procurement. EAs procured are registered in a SAF Registry and allocated to aircraft operators and other companies, which CAAS says can use them to claim emissions reductions under ICAO's CORSIA scheme or for sustainability reporting. Businesses can also use the central process to buy SAF voluntarily.
CAAS has also said SAFCo will encourage investment in SAF production and SAF-related carbon markets in Singapore and the region, drawing on regional feedstocks and Singapore's existing petrochemical sector. For energy and commodities businesses, the levy is therefore not only a cost but a signal of long-term, centrally aggregated demand for SAF supply contracts.
For companies tracking Scope 3 travel emissions, this allocation mechanism matters. See our pages on sustainability reporting and carbon markets in Singapore.
Passing the levy on: airlines, charterers and freight
The Act allows the SAF levy in Singapore to be passed on to passengers, consignors of goods by air and flight charterers. Most of the legal work therefore sits in commercial contracts and pricing, not in the levy itself.
- Ticketing and distribution. Airlines and ticketing agents need systems that apply the correct band and cabin to tickets sold from 1 October 2026 for departures from 1 January 2027, and that exclude transit passengers.
- Price display. Show the levy transparently in fares and itemised charges, consistent with consumer protection rules on price display and drip pricing.
- Interline and codeshare. Agree which carrier collects and remits on interline and codeshare itineraries, and how refunds are handled.
- Charter agreements. Add pass-through clauses for the per-aircraft levy, with indemnities for levy changes and itinerary-based band adjustments.
- Freight contracts. Before cargo services sold from 1 October 2027, update rate cards, forwarding terms and contract pricing mechanisms for the per-kilogramme levy.
- Refunds and cancellations. Set clear rules for refunding the levy where a passenger does not fly or a booking is changed.
- Records and audits. Keep data supporting band classification and remittances for regulatory and customer queries.
Corporate travel buyers should also check their travel management agreements. Negotiated fares, rebates and fixed-price packages may or may not include government charges, and the SAF levy in Singapore is a new line that buyers will want reported separately for budgeting and emissions accounting.
For contract drafting more generally, see our article on air carrier contracts in Singapore. For consumer-facing pricing, our guide to e-commerce consumer rules covers price transparency issues.
Lessors, banks and financiers
Allen & Gledhill's commentary on the Act highlights implications for lessors and banks as well as airlines. Wherever a statutory levy can be imposed on flights and operators, financiers and lessors should check how unpaid levies are recovered, whether recovery can affect aircraft or operators connected to their collateral, and whether lease and loan documents treat such charges as the lessee's responsibility.
Practical steps include reviewing the taxes and charges clauses, covenants to pay airport and navigation charges, and information undertakings in leases and facility agreements, and asking lessees to confirm levy compliance. See our guide to aviation leasing in Singapore.
Illustrative scenario: a business jet charter
This scenario is illustrative and does not describe any real operator. A Singapore charter broker agrees in November 2026 to provide a mid-size business jet for a corporate client's trip to Tokyo in February 2027, returning via Sydney. The booking is sold after 1 October 2026 and departs after 1 January 2027, so the per-aircraft levy applies to the Singapore departure.
The broker's standard terms already include a clause passing through "government taxes and charges", but its quote shows a single all-in price. The client challenges a later invoice for the levy. Because the terms are ambiguous and the quote was all-in, the broker absorbs the cost.
For future bookings it amends its terms to list the SAF levy expressly, shows the levy as a separate line, ties it to the CAAS band of the first destination after Singapore, and reserves the right to adjust if CAAS changes the quantum before departure.
Risks and common mistakes
Applying the wrong date test
The passenger and business aviation levies apply by reference to two dates: tickets or services sold from 1 October 2026, and departures from 1 January 2027. A booking sold before 1 October 2026 for a 2027 departure, or sold now for a December 2026 departure, needs careful handling. Configure systems on both dates and test edge cases.
Charging transit passengers or the wrong band
The levy applies to origin-destination passengers and is based on the first destination after Singapore. Charging transit passengers, or applying the band of the final destination on a multi-stop itinerary, can lead to over-collection, refund claims and complaints. Build the rule into fare filing and agency guidance.
Hard-coding the quantum in long-term contracts
CAAS may review the levy from time to time, and the SAF target is intended to rise towards 2030. Freight, charter and corporate travel contracts lasting several years should use a pass-through mechanism linked to the levy as published, not fixed figures.
Overlooking emissions reporting
Companies paying the levy indirectly through tickets or freight may want to account for the related emissions benefit. Under the CAAS model, EAs are registered and allocated through SAFCo, so a business that wants to claim SAF benefits should understand the allocation route rather than assume ticket payments confer a claim.
Treating the levy as optional in refunds and disputes
When a passenger cancels or a charter is called off, customers will expect the levy back if the flight never departs. Refund policies, charter cancellation clauses and agency terms should say how the levy is handled, how quickly it is refunded and who bears any administrative cost. Silence in the contract invites complaints and, for consumers, scrutiny under fair trading rules.
Cross-border angle: foreign carriers and regional networks
The SAF levy in Singapore applies to flights departing Singapore regardless of the airline's nationality, so foreign carriers serving Changi must comply alongside Singapore carriers. Operators from Bangladesh, the Gulf, China and the UK should align Singapore ticketing with the SAF mandates and charges they face elsewhere, such as blending mandates in the EU and the UK, so passengers are not charged twice in confusing ways.
Groups with regional hubs should also map how the Singapore levy interacts with their own decarbonisation commitments and with SAF purchased under other schemes. Clear internal records of what was paid, where, and which environmental attributes were allocated will make future sustainability reporting and any customer claims about lower-carbon travel far easier to support.
For freight forwarders and shippers, the 2028 cargo levy will become a cost line in Asia–Europe and transpacific air freight. Our offices in Dhaka, Dubai, London and China can help align contract terms across a network. See also our page on climate risk contracting.
Checklist: what to do now
- Confirm ticketing and charter systems apply the levy to sales from 1 October 2026 for departures from 1 January 2027.
- Exclude transit passengers and apply the band of the first destination after Singapore.
- Update charter, corporate travel and interline terms with clear pass-through and refund clauses.
- Plan freight contract changes ahead of the cargo levy for services sold from 1 October 2027.
- Review lease and finance documents for taxes-and-charges and compliance covenants.
- Monitor CAAS for changes to the levy quantum, bands or SAF target.
The SAF levy in Singapore is modest per passenger but touches ticketing, consumer pricing, charter and freight contracts, and finance documents. If you need to update contracts or assess exposure, contact TRW & Co. Where Singapore court or tribunal representation is required, we work alongside Singapore-qualified counsel.
Frequently asked questions
01When does the SAF levy start in Singapore?
CAAS states that the passenger levy applies to origin-destination passengers on flights departing Singapore from 1 January 2027, for tickets sold from 1 October 2026. The same dates apply to the per-aircraft levy on general and business aviation. The cargo levy applies to shipments departing from 1 January 2028 for cargo services sold from 1 October 2027. The levy was originally due to apply to flights from October 2026 but was postponed in March 2026.
02How much is the SAF levy on a flight from Singapore?
It depends on the destination band and cabin. Economy and premium economy passengers pay S$1.00 (Band I), S$2.80 (Band II), S$6.40 (Band III) or S$10.40 (Band IV). Business and first class passengers pay S$4.00, S$11.20, S$25.60 or S$41.60 respectively. For itineraries with stops, the band is based on the first destination after departing Singapore. These figures are from CAAS's published schedule as of October 2026.
03Do transit passengers pay the SAF levy?
No. The passenger levy applies to origin-destination passengers departing Singapore, and reporting of CAAS's announcement confirmed that passengers transiting through Singapore will not be charged. Training flights and flights for charitable or humanitarian purposes are also excluded. A passenger who starts a journey in Singapore and stops over in a third country is still an origin-destination passenger for the Singapore departure. Airlines and agents should make sure their systems correctly identify transit passengers to avoid over-collection and refund claims.
04Who is legally responsible for the SAF levy?
The Civil Aviation Authority of Singapore (Amendment) Act 2025 empowers CAAS to impose the levy on flights departing Singapore and allows it to be passed on to passengers, consignors of goods by air and flight charterers. In practice airlines and operators collect it through tickets, charter prices and freight rates. Contracts should state clearly who bears the levy, how it is shown and what happens if CAAS revises it.
05What is the SAF levy used for?
Levy proceeds go into a dedicated SAF Fund, separate from CAAS revenue. The Fund buys sustainable aviation fuel and SAF environmental attributes and covers related administrative costs. SAFCo, launched in October 2025, manages collection and central procurement. The environmental attributes are registered and allocated to aircraft operators and other companies, which can use them for CORSIA or sustainability reporting. Businesses can also buy SAF voluntarily through the central procurement process.
06Will the SAF levy amount change?
The levy is set at a fixed quantum based on the SAF volume needed to meet the target and a projected SAF premium. If actual premiums differ, CAAS adjusts the SAF uplift rather than the levy, which gives cost certainty. However, the quantum can be reviewed from time to time, and CAAS aims to raise the SAF target from 1% in 2027 to 3%–5% by 2030, so long-term contracts should allow for revisions.
Sources and official materials
- CAAS: Airline domain sustainability initiatives (SAF levy amounts) — Levy dates, bands, passenger, business aviation and cargo levies
- Civil Aviation Authority of Singapore Act 2009 — Statute amended in 2025 to create the SAF levy and Fund
- Civil Aviation Authority of Singapore — Regulator announcements and updates
- ICAO: CORSIA — International offsetting scheme for aviation emissions
- BritCham Singapore (Straits Times): Green jet fuel levy postponed — March 2026 postponement, bands and exclusions
- Allen & Gledhill: Singapore's new SAF levy and fund — CAAS (Amendment) Act 2025 dates and pass-through
General information only, current as at 20 October 2026. It is not legal advice and does not create a lawyer–client relationship. Singapore law and regulatory practice change; check current official sources and take advice on the facts of your matter.
